Transparency with Income doesn't have to be so hard.
Ever see those posts about generating five-figures in a month? It’s almost like this new badge of honor to say you brought in 10k+ this month, right?
Those posts get dozens of comments, likes, etc. because numbers attract people. Seeing an “impressive” financial goal is exciting because so many of us are vying to hit those income goals.
But here's the problem with those numbers...
You never see their books unless they’re sharing them.
You have no clue how much they’re spending on client acquisition, how much is being spent on support, and dare I say how much of it is truthful! Trust me, I’ve been there. There was a point where I was generating a decent amount of revenue, but I was also spending a fortune running my business. I was doing 15k a month worth of work but only bringing home under 5k at the end of the day. Boy, was it stressful.
And I could have posted all over social media the fact that my business was bringing in 15k each month…but that would have been a bit deceiving since I was only able to bring home about ⅓ of that, right? This is why those numbers can be misleading.
There’s a massive difference between revenue and income.
There’s a difference between a freedom based lifestyle and a business you need to work around the clock to sustain.While those “I made 20k in a month” posts seem exciting, we have no clue what went on behind the scenes.
With social media and technology, we live in a world of highlight reels, and you’ll only see the perfection side people want to share.
And this can be discouraging when you see the behind-the-scenes of your business and no one else’s!
Transparency with Income: The Hard Math
According to the SBA, you should be paying yourself 50% of profits. That means if your business brings in 20k a month and you spend 8k a month on bills and tax savings, you’re only paying yourself half of the remaining 12k available to you.
That 20k month is excellent and deserves to be celebrated. But you also must keep in mind that out of the 20k that the business brings in, you get to bring home 6k.
When I started scaling my business quickly to six-figures, no one saw how much I was spending to do that. I had hired entire teams to help me reach my goals, but that was part of my behind-the-scenes. Nobody saw that but me. That’s why I focus so heavily on creating a sustainable business.
Together we can create a business that does bring those six-figures in for you and doesn’t have you spending half to get there.
Finding Transparency with Income within Ourselves
I think it’s time we stop promoting this idea that 20k months means we’re putting exactly 20k in our personal checking accounts every single month.
It’s 100% possible for us to bring in 20k in our personal checking accounts. It’s possible to generate 7-figures and put it into your personal checking account.
Raise your hand if you’ve seen tons of posts about bragging about net revenue. I’m betting it’s almost 0.
For some reason, finances have become a taboo subject for us. Lack of honesty about finances is a leading cause of divorce in the United States. It’s time to take the taboo out. It’s no shock that it is showing up in our businesses too. It’s time to get real and transparent about what’s going on in our business.
For instance, my business now generates roughly 20k a month and I’m only spending 3k a month, part of it outsourcing. That’s way better than the time I was spending 10k to make 15k a month. The tools I teach to my clients help you get there. We have created a society where discussing money is something to avoid.
If you’re wealthy, it’s tacky to review your finances and if you’re living paycheck to paycheck than it’s a reminder of your socioeconomic status.
But that’s part of the problem. Transparency with income.
If we got more honest about our finances, where we’re struggling and where we’re thriving, we could help one another.
For instance, we’ve all heard about the gender wage gap. How do we know that women are paid less? We talked about it. We started a conversation to help support one another. The more we talk about it, the more we can help one other.
Almost every business coaching program includes some mindset work and more importantly money mindset work because we all have some old money programming that needs to be adjusted.
We cannot operate our computers at peak performance if we're running on old software..Our attitudes toward money are the same.
We cannot grow our accounts if we’re deceptive about what’s going on with our finances whether it’s just to ourselves or to the social media world.